Distinguish between the following two methods of depreciation: straight-line and diminishing balance method.
The straight-line method for depreciation calculates a fixed amount of depreciation over the assets useful life. The reducing balance method calculates the depreciation every year based on the assets net book value. The depreciation amount therefore reduces each year.
RB
Related Accounting GCSE answers
All answers ▸What are the methods of calculating depreciation?
Discuss the relative merits of a rights issue of ordinary shares and a bonus issue of ordinary shares
what is the difference between management and financial accoounting?
List three ways in which the accounting equation can be written.